SEC Is Under the Gun

The regulatory agency's work is going to be reviewed.
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The Government Accountability Office is planning an audit of the

Securities and Exchange Commission's

oversight of the financial markets.

The move comes on the heels of pressure from Sen. Charles Grassley (R., Iowa), the chairman of the Senate Finance Committee. Grassley is asking for an investigation into the SEC supervision of the self-regulators at the

New York Stock Exchange

(NYX)

and the

National Association of Securities Dealers

.

"One area that I am particularly concerned about is whether SEC is effectively managing the substantial increase in funds' given to the enforcement and examinations divisions as part of the 2002 Sarbanes-Oxley law," Grassley wrote in a letter to the GAO on Sept. 19. The investigation is to ensure that "additional resources are being used effectively."